Dean Foods Prices WhiteWave Foods Spin-Off

Deans Foods (NYSE: DF  ) has set a public offering price of $17.75 per share for approximately 29.9 million shares of WhiteWave Foods, a wholly owned subsidiary of Deans Foods, according to a recent press release. The intention to spin-off WhiteWave was first announced May 1, 2013.

In addition to the 29.9 million shares of WhiteWave offered, the deal's underwriters have the option to purchase an estimated 4.5 million more shares at the $17.75 price. Should the underwriters of the deal, JPMorgan Securities and Bank of America Merrill Lynch, decide to exercise their option for the additional shares, Dean Foods will have fully divested itself of WhiteWave Foods.

In lieu of a cash payment, Dean Foods will swap its shares of WhiteWave to BofA and JPMorgan to offset existing indebtedness with the investment banks. As a result, Dean Foods expects "the debt-for-equity exchange to be a tax-free transaction."

The offering is expected to close July 25, 2013, according to the release.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2545436, ~/Articles/ArticleHandler.aspx, 12/18/2014 4:16:44 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement